STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30 JUNE 2015
At 30 June 2014
20. EMPLOYEE-RELATED COSTS (continued)
R R
Dep M
Manager: Infra
& Technical Services
Dep M Manager:
Community Services
30 June 2014
Annual Remuneration 665 249 825 792
Annual Bonus - 68 816
Performance Bonus - 81 668
Travel Allowance 187 900 193 104
Contributions to UIF, Medical and Pension funds 302 232 170 857
Total 1 155 381 1 340 237
30 June 2015 Dep M
Manager:
Financial Services - CFO
Dep M Manager:
Corporate Services
Dep M
Manager: City Development
Annual Remuneration 890 475 536 754 282 341
Annual Bonus 79 391 - -
Performance Bonus 123 669 - -
Travel Allowance 204 600 60 000 -
Non Pensionable Allowance 192 633 77 053 -
Contributions to UIF, Medical and Pension funds 25 949 25 546 -
Total 1 516 717 699 353 282 341
30 June 2014
Annual Remuneration 952 694 834 709 761 032
Annual Bonus 74 904 69 559 -
Performance Bonus 128 335 93 335 81 668
Travel Allowance 204 600 183 125 409 199
Contributions to UIF, Medical and Pension funds 51 565 220 644 103 179
Total 1 412 098 1 401 372 1 355 078
Annual bonus forms part of the annual package of officials and is not an additional item.
57
20. EMPLOYEE-RELATED COSTS (continued) R R R
30 June 2015 Head:
Financial Services Expenditure
Head: Financial Services Revenue
Head: Transport &
Roads
Annual Remuneration 558 873 423 626 746 764
Annual Bonus 46 573 50 783 -
Entertainment - - -
Housing Subsidy 6 402 4 767 -
Travel Allowance 239 376 181 381 263 415
Contributions to UIF, Medical and Pension Funds
304 056 149 345 245 663
Total 1 155 280 809 902 1 255 842
30 June 2014
Annual Remuneration 523 339 523 339 699 283
Annual Bonus 43 612 43 612 -
Entertainment 1 400 1 750 -
Housing Subsidy 5 736 4 780 -
Travel Allowance 228 020 228 020 246 666
Contributions to UIF, Medical and Pension Funds
314 978 147 115 226 786
Total 1 117 084 948 616 1 172 735
30 June 2015 Head:
Water &
Sanitation
Head: Human Resource Services
Head:
Administration Services
Annual Remuneration 352 497 558 873 -
Annual Bonus 54 484 31 261 -
Entertainment - - -
Housing Subsidy - - -
Travel Allowance 149 412 239 376 -
Contributions to UIF, Medical and Pension Funds
132 326 150 319 -
Total 688 719 979 829 -
30 June 2014
Annual Remuneration 523 339
528 994
32 049
Annual Bonus 43 612 43 612 -
Entertainment 1 400 1 050 -
Travel Allowance 228 020
230 036
13 835 Contributions to UIF, Medical and Pension
Funds
158 588
133 468 -
Total 954 959 937 160 45 884
58
20. EMPLOYEE-RELATED COSTS (continued) R R R
30 June 2015 Head: Health &
Public Safety
Head: Electrical Services
Head: Public Safety
Annual Remuneration 558 873 193 712 11 885
Annual Bonus 46 573 49 890 -
Entertainment - - -
-
Travel Allowance 239 376 79 142 6 566
Contributions to UIF, Medical and Pension Funds 238 568 84 342 -
Total 1 083 390 407 086 18 451
30 June 2014
Annual Remuneration 523 339 523 339 -
Annual Bonus 43 612 43 612 -
Entertainment 1 400 1 400 -
Travel Allowance 228 020 228 020 -
Contributions to UIF, Medical and Pension funds 202 531 162 304 -
Total 998 902 958 674 -
30 June 2015 Head: Parks,
Sport &
Recreation
Head:
Engineering Services
Head: SCM
Annual Remuneration
558 873 558 873 8 012
Annual Bonus 46 573 43 612 -
Entertainment - - -
Housing Subsidy - 6 402 -
Travel Allowance 239 376 239 376 33 348
Contributions to UIF, Medical and Pension Funds 260 582 182 131 -
Total 1 105 404 1 030 394 41 360
30 June 2014
Annual Remuneration 523 339 511 467 -
Annual Bonus 43 612 43 612 -
Entertainment 1 400 933 -
Housing subsidy - 5 736 -
Travel Allowance 228 020 223 675 -
Contributions to UIF, Medical and Pension funds 236 175 157 555 -
Total 1 032 546 942 978 -
59
2015 2014
R R
21. REMUNERATION OF COUNCILLORS
Executive Mayor 751 941 754 481
Deputy Mayor 658 256 622 265
Speaker 633 310 624 777
Chief Whip 594 370 562 112
Executive Committee Members 4 925 367 4 525 123
Chairpersons of Section 79 Committees Exco 581 493 190 083
Chairpersons of Section 79 Committees 989 742 1 143 400
Councillors 11 343 821 10 967 085
Councillors pension contribution 2 143 977 2 018 945
Total Councillors Remuneration 22 622 277 21 408 271
The Speaker, Chief Whip and Executive Committee members are full-time. Each is provided with an office and secretarial support at the cost of the Council. The Mayor is also provided with a vehicle for business use at the cost of the Council.
Annual bonus forms part of the annual package of officials and is not an additional item.
22. FINANCE COSTS
Long-term liabilities 71 171 449 71 144 663
Total interest on external borrowings 71 171 449 71 144 663
23. BULK PURCHASES
Electricity 961 941 673 969 539 822
Water 138 719 793 82 085 979
Total Bulk Purchases 1 100 661 466 1 051 625 801
60
2015 2014
R R
24. GRANTS AND SUBSIDIES PAID
Richards Bay Country Club 345 986 309 792
16 Days of Activism 88 190 -
Early Childhood Development - 300 000
S P C A - 333 300
Isigugu Samanxamalala Matomela Trust - 100 000
Schools and uThungulu Community Forum - 60 000
MTA Invitation - 61 514
Children 37 530 74 360
Sundries 596 663 394 767
Property Rates Relief 1 475 584 1 227 502
Dolos Festival 50 000 50 000
uMhathuze Rangers FC - (70 000)
Womens Summit 99 442 -
Senior Citizens 59 877 -
Mens Summit 70 450 -
Operation Sukuma Sakhe Programs 119 456 -
Community Outreach - Mandlazini 90 000 -
University Registrations 128 000 -
Thanda Royal Zulu 500 000 -
Last Dance Festival 650 000 -
Youth Summit - 133 254
World Aids Day 46 429 47 022
Total Grants and Subsidies Paid 4 357 606 3 021 511
61
2015 2014
R R
25. CASH GENERATED FROM OPERATIONS
Surplus/(Deficit) for the year 149 208 752 197 905 532
Adjustment for:
Depreciation 338 127 009 241 712 732
Amortisation 1 807 982 2 627 456
Post employment benefit expenses 65 268 865 28 913 044
Public contribution excluded as non-cash - (49 658 470)
Loss on disposal of property, plant and equipment 315 170 43 101
Gain on disposal of investment property (10 000 000) -
Non-cash Grants (Donation) - (584 541)
Movement in bad debt provision 23 438 473 63 222 720
Investment income (27 558 341) (21 060 123)
Interest paid 71 171 449 71 144 663
Operating surplus before working capital changes 611 779 359 534 266 114
(Increase)/ Decrease in inventories 30 969 780 2 503 788
(Increase) in debtors 41 741 035 (140 289 049)
Decrease/ (Increase) in other debtors (19 709 089) (5 103 954)
(Decrease)/ Increase/ in unspent conditional grants and receipts (61 272 761) (21 571 221)
(Decrease)/ Increase in creditors 18 165 335 86 055 769
(Increase)/ Decrease in VAT claimable (625 307) 6 457 012
(Decrease)/ Increase in consumer deposits (956 209) 5 129 196
Cash generated from operations 620 092 143 467 447 655
26. ELECTRICITY AND WATER LOSSES
Water losses for the City of uMhlathuze calculated at a variable cost per kilolitre amounts to:
Total produced and purchased (KL) 43 003 829 45 700 751
Total sold (KL) 26 675 400 28 197 051
Water Loss (KL) 16 328 429 17 503 700
% Loss 37.97% 38.30%
Variable cost/ KL R
2.25
R 1.43
Total water losses 36 738 965 25 087 109
Water losses are attributable to the following reasons:
Non-technical reasons
Included in these losses is measured water through bulk meters supplying the Traditional Areas of Mkhwanazi South, North and Dube. However individual households are not metered yet hence not billed and therefore recorded as lost at this stage.
Technical reasons
Aged reticulation without sufficient replacement, refurbishment and maintenance. Incorrectly calibrated meters
62
26. ELECTRICITY AND WATER LOSSES (Continued) 2015 2014
R R
Electricity losses for the City of uMhlathuze calculated at a unit cost per kilowatt amounts to:
Total purchases (KW) 1 396 529 283 1 600 621 423
Total sold (KW) 1 302 300 100 1 440 934 507
Electricity Loss (KW) 94 229 183 159 686 916
% Loss 6.747% 9.977%
Unit cost/ KW R 0.68 R 0.58
Total electricity losses 64 274 183 93 101 990
Electricity losses are attributable to the following reasons:
Non-technical reasons
Theft, unmetered supply and error in metering.
Technical reasons
Electrical resistivity in the network.
Ageing of network without sufficient replacement, refurbishment and maintenance.
Incorrect meter calibration and monitoring.
2015 2014
27. ADDITIONAL DISCLOSURES IN TERMS OF THE MFMA R R
27.1 Contributions to SALGA
Council subscriptions 5 296 814 4 169 187
Amount paid 5 296 814 4 169 187
27.2 Audit fees
Amount paid - current year 3 000 492 2 126 265
27.3 PAYE, SDL and UIF
Opening balance 5 720 422 5 119 721
Current year payroll deductions 78 544 070 74 624 035
Amount paid - current year (72 390 588) (68 903 613)
Amount paid - previous year (5 720 422) (5 119 721)
Balance unpaid (included in creditors) 6 153 482 5 720 422
The balance represents June's contribution paid over in July.
27.4 Pension and Medical Aid Deductions
Opening balance 6 241 676 5 500 400
Current year payroll deductions 127 521 374 123 461 737
Amount paid - current year (121 038 005) (117 220 060)
Amount paid - prior year (6 228 798) (5 500 401)
Balance unpaid (included in creditors) 6 496 247 6 241 676
The balance represents continued members contributions received in advance.
63 27.5 Councillor's Arrear Consumer Accounts
The following councillors had arrear accounts outstanding for more than 90 days as at 30 June.
2015 Total < 90 days > 90 days
Mkhize GM 10 074 291 9 783
Total 10 074 291 9 783
2014 Total < 90 days > 90 days
Khoza M - 380 543
Total - 380 543
During the year the following Councillors' had arrear accounts outstanding for more than 90 days. The following represents the highest amount outstanding:
2015 Highest Amount
Outstanding
Ageing
Mkhize GM 9 783 90+ days
2014 Highest Amount
Outstanding
Ageing
Khoza M 543 90+ days
2015 2014
28. CAPITAL COMMITMENTS R R
Commitments in respect of capital expenditure
Approved and contracted for 184 737 880 273 479 565
Approved but not yet contracted for 313 569 520 146 382 235
Total capital commitments 498 307 400 419 861 800
This expenditure will be financed from
Internal sources 232 812 700 106 720 900
External loans 142 572 300 144 738 000
Grants and subsidies 122 922 400 168 402 900
Total capital commitments 498 307 400 419 861 800
29 CONTINGENT ASSETS, LIABILITIES AND CONTRACTUAL OBLIGATIONS
There is arbitration where the Municipality alleges that it is due by Zotech
the amount of R4 477 597 in terms of a service level agreement. Zotech claims these amounts are not due. The matter is still pending.
64 29. CONTINGENT ASSETS, LIABILITIES AND CONTRACTUAL